MDBs collective climate financing contributions set to hit $170 bn by 2030

15 / 11 / 2024

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• Sustainable Development

The annual collective climate financing contributions from the group of multilateral development banks (MDBs) is set to cumulatively reach $120 billion by 2030 for low-and middle-income countries, including $42 billion for adaptation.

The MDBs also aim to mobilize $65 billion annually from the private sector. For high-income countries, this annual collective climate financing is projected to reach $50 billion, including $7 billion for adaption, and the MDBs aim to mobilize $65 billion from the private sector.

The announcement came within the framework of the 29th United Nations Climate Change Conference (COP29), currently held in Baku.

The estimates encompass lenders including the Asian Development Bank (ADB), the World Bank Group, the African Development Bank (AfDB), the Asian Infrastructure Investment Bank (AIIB), the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDB), the Islamic Development Bank (IsDB) and New Development Bank.

MDBs have exceeded their 2025 climate finance projections set in 2019, with a 25% increase in direct climate finance and mobilization for climate efforts doubling over the past year.

The estimates were presented during a high-level meeting in Baku hosted by COP29 President Mukhtar Babayev. He was joined by Heads of States and Governments as well as senior executives from the lenders and other major financial organisations, including the International Monetary Fund (IMF).

One of the key pillars of the COP29 Presidency’s plan – enabling action – involves putting in place the financing necessary to support urgent climate action. Commenting on the estimates, the COP29 President Mukhtar Babayev said: “Every contribution is welcome, but there is still a clear gap between where we are and where we need to be. We are working closely with the shareholders of international financial institutions at COP29 as we seek to build the foundations of a fair and ambitious new climate finance goal.”

He continued “We must deliver what the world expects, including climate financing that is several multiples beyond existing arrangements, adequate to the scale and urgency of the problem. As a Presidency, we are committed to ensuring that Party and non-Party stakeholders have spaces available to discuss and progress such means of implementation.”